It has been a tough slog for value tradersover the past few years, with growth strategies ascendant, but many analysts continue to believe value will make a comeback.
“The gap between growth and value strategies is wider than during the tech bubble of the late 1990s,” observed Todd Rosenbluth, head of mutual fund and ETF research at CFRA.
“Investors should be prepared for the likelihood that the gap narrows (a reversion to the mean) and seek out attractive securities within the value style,” the analyst said.
(Here’s a little primer on factors like value and growth, and a more recent update on how to apply that thinking to the current environment.)
Rosenbluth recommends a handful of stocks that he calls “attractive, yet out-of-favor”: Cardinal Health
CAH,
+0.26%,
Cisco Systems Inc.,
CSCO,
+1.02%
PepsiCo Inc.
PEP,
+0.99%,
and Walmart Inc.
WMT,
+0.91%
If investors want exposure to those securities within a fund, several ETFs that have large holdings of each stock are noted below.
Consumer Staples Select Sector SPDR Fund
XLP,
+0.75%
|
WMT 10%, PEP 10%
|
QRAFT AI-Enhanced U.S. Large Cap ETF
HDIV,
+0.62%
|
WMT 9%, PEP 5%
|
VictoryShares US Multi-Factor Minimum Volatility ETF
VSMV,
+0.71%
|
WMT 4%, CSCO 3%
|
First Trust BuyWrite Income ETF
FTHI,
+0.52%
|
WMT 2%, CAH 1%
|
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